Today marks the first day of the First Funnel Week. By end of day Friday, policy bills will need to have been passed by the committee to which they were assigned in order to stay alive for the session. This means the introduction of new bills is about to taper off dramatically and the intense number of subcommittee meetings over the last few weeks will taper off and be replaced by full committee meetings.
The passage of the First Funnel usually marks the beginning of the budget work for the session. The Revenue Estimating Conference (REC) has set their March meeting for March 10th where they will set new revenue projections. The Legislature is required to assemble a budget using the LOWER of the two projections that come out of the December and March REC projections.
In the previous updates this session, we summarized four of the main property tax bills that are being discussed early in the session. Typically, discussion around tax reform does not start until after the first funnel. This early head start should indicate to everyone that the Legislature is serious about reaching consensus on this issue this year. Advocates need to be active and assertive, not just with legislators, but also in spreading the word locally with other concerned citizens that might want to weigh in about the pros and cons of some of the proposals on the table.
With the rollback recalculation bill (SF 181) signed into law, legislators now seem to be focusing on imposing revenue limitations on local government. The Senate’s SF 356 (formerly SSB 1124) and the House’s HF1 are very different bills, but they both contain provisions that would cap local government revenues and only allow them to rise by a set percentage per year. The Senate’s bill also would eliminate a number of individual levies and consolidate all city and county levies into one. We anticipate the Senate wanting to pass SF 356 in order to keep the conversation with the House moving forward.
The Senate’s other big tax bill, SSB 1125, was passed by subcommittee this week and will likely be approved by the full Senate Ways & Means Committee this week or next. SSB 1125 would eliminate the Local Option Sales Tax (LOST) and replace it with a state sales tax increase that would trigger funds flowing into the Natural Resources and Outdoor Recreation Trust Fund. The bill contains several other provisions.
If you have thoughts about tax reform, NOW is the time to be engaging with your legislators! In your community, you may also send any comments or perspective to MEDCO President Nick Glew.
CLICK HERE to learn more about other bills being tracked by Professional Developers of Iowa.
SSB1157: Gas/Electric Utility Regulations
Makes changes to regulation of gas and electric utilities.
HSB82: Registered Apprenticeship Act
Establishes the Iowa registered apprenticeship act.
HSB126: Governor's Reorganization Bill
Enacts provisions to reorganize all of state government.
HF47: Child Care Exemption
Provides an income tax exemption for wages received for performing certain childcare services.
HF447: Workforce Grant & Incentive Program
Establishes the Iowa Workforce Grant and Incentive Program.